Lee Iacocca: Understand Your Customers

Ford DealershipFor Lee, the dealers are the ONLY CUSTOMER of Ford, not the end user of the automobile. Ford’s business model relied heavily on key partners such as dealers who were franchised out. Sales representatives, such as Iacocca, would directly interact with dealerships for that purpose. Making sure that the dealers felt needed as part of the team was very important. Bringing them in as part of the ‘head table’ was one thing other managers did not grasp at Ford. Iacocca knew that happy relations with the dealers = greater profits and responsiveness to demand. Dealers were the guts of the car business in the 20th century and were the quintessential entrepreneurs according to Lee.

Since the dealerships manage the relationship with the customer, Iacocca had only a passing exposure to those interactions but a simple dealer sales tip to remember is that anybody who buys a car will rationalize the purchase for at least a few weeks, even if it was a mistake. Buyer’s remorse is always an issue when the product is a large purchase such as a home or automobile. One of Lee’s mentors was a sales guy who would phone a recent buyer 30 days after completing a sale and ask “how did your neighbours like your new car?” By asking about friends instead of directly asking about the car, the sales rep could get new leads + the customer will want to justify that it was still a smart buy in the face of social status.

This is a synopsis & analysis based on Iacocca: An Autobiography and other miscellaneous research sources. Enjoy.

Margaret Thatcher on the General Election of 1987

On The General Election of 1987 Thatcher had suffered from the Westland affair and the attack on Libya but Britain was healing economically. The Westland affair was used to show Thatcher as intransigent and a poor listener. Thatcher agrees that she will talk over timid or inarticulate arguments. Thatcher has to interrupt men whose voices they themselves love too much. Thatcher had to show that her government would espouse an open dialogue of views.

Strategy groups were formed to develop new policies. The economy, jobs, foreign affairs, defence, agriculture and NHS were the major issues. Fortunately Labour offered an anti-American defence policy, according to Thatcher. The 1986 Conservative conference was about the “Next Move Forward”. She attacked the Labour Party for wanting to dismantle the NATO nuclear umbrella. It worked as a pre-election attack. Thatcher believes that she was transforming Britain from limited ownership to popular capitalism: giving power back to the people of Britain.

NHS was a touchstone to Conservative support of the Welfare State. Thatcher wanted to bring down waiting lists although she accepted that a new cohort of aging people would cost greatly. The big issues for the election were housing, trade unions, privatization, lower taxes and local government financing. She called for giving regular citizens the kinds of public services that the rich already enjoyed. Thatcher wanted to empower not just the rich (as is implicit in her politics) but the poor as well. The soft Tory Alliance Party was a threat as a third party to the Conservative majority.

Thatcher called the Labour manifesto an ‘iceberg’ of socialism. The Conservative weak point would always be the social services, admits Thatcher. The lengthy preparations of NHS were kept until late in the campaign when it became a significant issue. Alliance shot itself in the foot when it attacked Thatcher’s strength on National Defense exposing a unilateralist position. Neil Kinnock’s massive gaffe was that he would run for the hills and prepare for a guerrilla warfare if Soviet aggression emerged: “using the resource we had to make an occupation untenable.” Thatcher attacked his weakness here stating he should not be PM taking the issue too lightly and based on his Labour party unilateral disarmament defence policy. Kinnock in the media was portrayed with crowds always where Thatcher was shown with boardrooms or factories: Britain’s industrial/innovative future. The Labour Party was talking about white flags, guerrilla fighting while Thatcher pounced on this weakness to suggest that her defence policy was superior. This was the major focus of the 1987 campaign. Thatcher won with a reduced majority of 102 seats. Conservatives gained a third convincing majority.

Margaret Thatcher on Hong Kong, Israel and South Africa

On Hong Kong, Israel, South Africa
Hong Kong was set to be returned to China in 1997. Thatcher accepted this but wanted to entrench strong democratic values and economic strength to influence China’s communist government into liberalizing elsewhere. She wanted to change China when Hong Kong became part of that country. Thatcher was open about her intentions. She wanted China to recognize the economic superiority of the Western market. The US was most responsible for the establishment of Israel. Thatcher believes that Britain was build on Judaeo-Christian values. Britain stays balanced between Palestine and Jewish influence on the Arab-Israeli conflict.

South African segregation was part of a tradition that Thatcher effectively supported. She did not want to abandon SA because of the racial violence occurring there. She felt the policy reflected the hierarchical values of that society. Brian Mulroney attempted to push for the exclusion of SA from the Common Wealth, Thatcher felt he was posturing. Thatcher didn’t want to give Mulroney her negotiating hand because concessions often get pocketed if revealed inappropriately.

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